News
tralac’s Daily News selection: 3 June 2015
The selection: Wednesday, 3 June
The WEF Africa conference started this morning in Cape Town: some links
Africa faces mounting risks to keep rising growth record going (Bloomberg)
Sim Tshabalala: 'How finance can accelerate steady inclusive growth in Africa' (Business Report)
Book launch: 'Africans investing in Africa' - edited by Terence McNamee, Mark Pearson, Wiebe Boer (Brenthurst Foundation)
SA gets chance to shine at WEF (Business Report)
Leaders discuss a single market for Africa, need for peace and stability (AfDB)
Ghanaian President John Dramani Mahama while in agreement with his counterparts on the need to have peace and stability as a means of enhancing integration efforts, also suggested how it could be done: through participatory integration that allows every African to play a role. “That way, we can avoid or reduce the risk of people that might want to burn the place down because they feel they’re not being included,” he cautioned.
Mahama also challenged AfDB to take the centre-stage in the campaign for a single market for Africa arguing that the Bank has managed to transform itself into a respected institution of the continent and it was ready to take on such serious responsibilities. “It’s now time for AfDB to now transform the continent that gave birth to it, through funding Africa’s integration agenda” Mahama challenged.
Zambia - DR Congo discuss the Simplified Trade Regime (COMESA)
The three day meeting hosted at the COMESA Secretariat is expected to come up with a unified, negotiated list of products that can be traded by the two neighbouring countries. This will boost trading by bringing cross-border trade into formal mainstream trade. Products usually traded are maize, pulses, groundnuts, fish, electronic products, plastics, cosmetics, other hardware parts, clothing and textile materials and shoes among others.
Among the issues to be addressed in both the short and long term include the products in the STR Common List and the value threshold for high value products between the two countries. Others are excessive taxes and fees and the complexities of other regulatory procedures which are still considered important such as sanitary and phyto-sanitary measures. This bilateral meeting between the DRC and Zambia is the first in a long time. If successful, the STR will be launched at the DRC/Zambia borders of Kasumbalesa, Mokambo and Sakanya.
Eliminating counterfeits: laws alone not enough (The New Times)
How will an ordinary mwananchi owning a building in Bungoma, Rwakiruuri, Nyagatare, Ombokolo, Buyenzi, Nyakanyansi, or any other rural township in East Africa know whether his tenant businessman is selling a fake BIC pen or a genuine one? Legislation alone will not be enough.
As legislation progresses, the East African Business Council must take the lead into the following measures:
The ultimate break-through will be a clearly defined EAC industrialisation path, defined on the following key tenets:
EAC budget dwindles third year in a row as sponsors exit (Daily Nation)
East African Community budget has for the third time in a row dropped, with a significant reduction in the number of development partners. Last week the regional legislative assembly debated and approved a Sh10.734 billion budget for the 2015/16 financial year, down from Sh12.049 billion approved last year. The assembly approved Sh12.785 billion in 2013.
This report presents the findings of the independent evaluation of the quality at entry of country and regional integration strategies. The purpose of this evaluation is two-fold: (1) assess the quality at entry of Country Strategy Papers (CSPs) and Regional Integration Strategy Papers (RISPs) and whether it has improved since the last independent quality at entry exercise (QAE1) undertaken in 2008 - 2009 (retrospective); and (2) to suggest potential improvements to the Bank’s design process for its country/regional strategies in light of the Bank’s Ten-year strategy (prospective).
ADF innovation policy Lab: EOI for chief advisor (AfDB)
The consultant will be a Chief Advisor responsible for the overall operation and management of “Shaping the Future of the African Development Fund” and creation of an ADF Policy Innovation Lab project. The Project is funded by Bill & Melinda Gates Foundation Trust Fund and will bring together the best creative, cross sector and cross-disciplinary minds to brainstorm on the subject of innovation for development finance in Africa.
Where are the keys to Africa’s industrialization? (AfDB)
Hellen Hai, CEO of the Made in Africa initiative, shared her experience of having started a shoe factory in Ethiopia which has grown to become one of Africa’s model stories and is spreading to more African countries such as Rwanda. “The Chinese model will require that you jump on the tiger and decide how to ride it when you are already on its back,” she said, her message indirectly urging African governments to launch the campaign for industrialization.
Ethiopia’s compelling rise - lessons for Africa (Brenthurst Foundation)
The Ethiopian government has driven growth through a range of infrastructural investments – rail and air transport, hydro-electricity and a national fibre optic cable scheme, to name some of the biggest – supported by sound policy. In contrast to its neighbours, Ethiopia remains politically stable, with a functioning and efficient government which has curbed corruption and reduced security threats in the country. Ethiopia’s state-centric approach to development has exposed a number of shortcomings, however. Its (in)ability to create or attract a productive private sector able to translate major infrastructural investments into the basis for a dynamic modern economy could yet blunt its future prospects. [The authors: Christopher Clapham, Greg Mills]
Nigeria’s foreign direct investment drops 49% q/q in Q1 2015 (BusinessDay)
The latest capital importation report released by National Bureau of Statistics has shown that Nigeria’s foreign direct investment declined by 48.7% in Q1 of 2015 in relation to the preceding quarter (Q4) 2014. The NBS report states that FDI showed the lowest year-on-year decline in inflows, at $96.09 million growing at -14.77%, while on quarter on quarter basis, the decline was larger at $374.25 million or -48.68%. [Download]
IMF adviser Njoroge picked as Kenya’s next central bank head (Bloomberg)
“The appointing authority saw it fit to get someone with international exposure,” Robert Bunyi, managing director of Nairobi-based investment company Mavuno Capital, said by phone on Wednesday. “As Kenya’s financial system integrates more with the global financial system, and we issue more debt instruments, our currency will come to the fore.” Njoroge’s appointment comes as the central bank grapples with accelerating inflation and a weakening currency.
AGOA: 'What came first: the chicken or the leg?' (The Trade Beat)
On the sidelines of this week’s OECD meetings in Paris, South Africa’s Minister of Trade and Industry Rob Davies and US Trade Representative Mike Froman will try and overcome the protracted dispute between the two countries on chicken exports. It is an example of a blind spot in global trade regulation: structural oversupply markets. These are markets that are in a state of permanent disequilibrium, in which supply always outstrips demand. [The author: Christopher Wood]
SA citrus exports to EU increase (Business Report)
South Africa’s citrus exports to the European Union (EU) increased by 9% in value last year despite having been hit by the troublesome citrus black spot fungus (CBS), said EU ambassador to South Africa Roeland van de Geer. More than 34% of South Africa’s citrus is exported to the EU and 40% of all citrus consumed in the EU in winter was imported from South Africa. Van de Geer strongly dismissed some suggestions from the South African side that the restrictions on CBS-infected citrus were a disguised trade protection measure.
African Natural Resources Centre seeks comments on its 2015-2020 strategy (AfDB)
The newly established African Natural Resources Center has launched an online consultation to seek comments from all stakeholders on its draft strategy for 2015-2020. This online consultation is consolidated by a series of regional and global consultations. Participation to the online consultation is possible through the following address: http://j.mp/ANRC_Consultation
Strengthening climate and disaster resilience in Sub-Saharan Africa (World Bank)
Most meteorological and hydrological service providers in Sub-Saharan Africa are unable to meet users’ current needs for weather and climate information. Also, corresponding infrastructure is inadequate. A recent WMO survey showed that 54% of the surface and 71% of the upper air weather stations in the region did not report data. In addition, there is limited and often fragmented funding from development partners. The need for a larger, sustainable system architecture inspired the WMO, African Development Bank, and World Bank Group to join forces. The initiative will have a flexible framework to coordinate and leverage financing, ranging between US$550-US$600 million, from various sources of development and climate finance. The initial phase will focus on 15 countries and four regional centres.
Transport in Africa: the African Development Bank’s intervention and results for the last decade (AfDB)
The goal of this evaluation is to inform future policy, strategic, and operational directions for the Bank’s assistance in the transport sector by: (i) identifying emerging trends in the sector; (ii) assessing how the Bank has responded to these trends; (iii) taking stock of the results of the Bank’s assistance; and (iv) drawing lessons for future work. In informing the renewal of the Transport Sector Policy, this evaluation sought to answer four main evaluation questions:
Capacity building for SADC parliamentarians: value for money in social sectors (AfDB)
Strict scanning rule leaves tonnes of export tea stuck in Mombasa (Daily Nation)
Burundi tax revenue declines as unrest persists (Africa Review)
Political unrest slows Burundi cargo uptake at Mombasa port (The Star)
Silencing the Guns: strengthening governance to prevent, manage, and resolve conflicts in Africa (AU/IPI)
The 30m-strong Africa diaspora likely sends $160bn home every year: Where does it go? (Mail and Guardian Africa)
More Nigerian professionals in Europe than in Nigeria, says EU (BusinessDay)
China factories scrabble for growth in May, export demand shrinks (LiveMint)
This post has been sourced on behalf of tralac and disseminated to enhance trade policy knowledge and debate. It is distributed to over 300 recipients across Africa and internationally, serving in the AU, RECS, national government trade departments and research and development agencies. Your feedback is most welcome. Any suggestions that our recipients might have of items for inclusion are most welcome. Richard Humphries (Email: This email address is being protected from spambots. You need JavaScript enabled to view it.; Twitter: @richardhumphri1)
